Non-resident US LLC owners
So you have decided that a US LLC is the best incorporation for you & your business/structure. You ultimately have to choose what’s best for you giving as many factors as you can involve–but here are some factors that can help you decide.
See the chart below to get a more complete picture of what’s required (to date Oct 2023), but first!
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Up Front Cost
When filing for an LLC you’ll have the state cost to register your company. This ranges between 35-500 dollars. Most states are around $100. If you’re living in another country you’ll need a registered agent which will have their own annual fee
Recurring Costs
Annually (usually annually), you’ll be expected to file a company report often with a fee. There are some states that are without a fee, but with a report. Others have no fee nor report. Each state have their own rules but most states are around 30-60 dollars a year.
Asset Protection
This is an important one in my opinion. There are five states in the US that have amended their state laws to treat single-member LLCs as their own distinct entities for asset protection purposes. In other words, in the states of Alaska, South Dakota, Wyoming, Nevada and Delaware your single-member LLC is completely separate from your own individual assets, whereas other single-member LLCs (in the remaining 45 states) can be viewed as being sole proprietorships for asset protection purposes. In the event that you don’t like any of these 5 states but wish to retain your assets separate from you as an individual you’ll need a multiple-member LLC (two or more).
Privacy
There are four states that allow for anonymous LLCs. This is very important as well in my opinion because of the increasing threat of cyber attacks that lurk. Anonymous LLCs are companies owners are not publicly identified by the state. The name and contact information of the “real” members and managers are private. An anonymous LLC isn’t a separate type of business legal entity, it’s still a normal limited liability company just according to state law it has a privacy component. Montana also has an element of privacy whereby the state filings do not require you to put your name or address.
Back Up
In the event that you actually move to the United States (I increasingly see this to be less and less of a promising move), you don’t want to have to wrap up your company–especially if you’re doing quite well with it. Without getting into how this would change for you, you’re going to want to ideally have your LLC in a state that you could see yourself living. South Dakota is very pro-business as of late but living there is fundamentally different than Orlando. Arkansas is absolutely not Oregon, etc. etc. This is just a precautionary factor to consider.
Tax Situation
When dealing with the IRS (or any Western government) it’s usually as complicated as the stars, but the super general matter to consider is not having a nexus or US-source of income to remain tax free. If you’re strictly an e-commerce company generally you’ll have no issues (so long as you don’t hire, invest, or locate yourself in the USA). LLCs are flow-through entities for tax so this provides a great emphasis on the need to lock onto a good tax residency yourself–again, Open Door can give advice on where is best for you.
Below is a breakdown of the state, the filing fee and the recurring annual fee. Contact us if you wish to learn more. For instance, there are nuances such as three states still require the new companies to advertise in a newspaper; Arizona, Nebraska and New York. Also, feel free to contact to inquire about various offshore jurisdictions such as Gibraltar, Andorra, Cayman Islands or Cook Islands that may be a better solution than the high fees of Massachusetts or California.
| State LLC | LLC Filing Fee | LLC Annual Fee | Due | Payable To & Form Name |
|---|---|---|---|---|
| Alabama LLC | $200 | $50 minimum | 2.5 months after formation and annually by April 15 | AL Department of Revenue, Initial Business Privilege Tax Return |
| Alaska LLC | $250 | $100 | Biennial, January 2 | AK Department of CCED, Biennial Report |
| Arizona LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| Arkansas LLC | $45 | $150 | Annual, May 1 | AR Secretary of State, Franchise Tax Report |
| California LLC | $70 | $800 + $20 | Various | CA Franchise Tax Board, Annual LLC Franchise Tax + Stmt. of Information |
| Colorado LLC | $50 | $10 | 5 month window surrounding anniversary month | CO Secretary of State, Periodic Report |
| Connecticut LLC | $120 | $80 | Annual, March 31 | CT Secretary of State, Annual Report |
| Delaware LLC | $90 | $300 | Annual, June 1 | DE Dept. of State, Annual Franchise Tax |
| Florida LLC | $125 | $138.75 | Annual, May 1 | FL Department of State, Annual Report |
| Georgia LLC | $100 | $50 | Annual, April 1 | GA Secretary of State, Annual Registration Fee |
| Hawaii LLC | $50 | $15 | During quarter of anniversary date | HI Business Registration Division, Annual Report |
| Idaho LLC | $100 | $0 (must file an information report, no fee) | Annual, anniversary month | ID Secretary of State, Annual Report |
| Illinois LLC | $150 | $75 | Annual, anniversary month | IL Secretary of State, Annual Report |
| Indiana LLC | $95 | $30 | Biennial, anniversary month | IN Secretary of State, Business Entity Report |
| Iowa LLC | $50 | $30 | Biennial, April 1 of odd years | IA Secretary of State, Biennial Report |
| Kansas LLC | $160 | $50 | Annual, April 15 | KS Secretary of State, Annual Report |
| Kentucky LLC | $40 | $15 | Annual, June 30 | KY Secretary of State, Annual Report |
| Louisiana LLC | $100 | $35 | Annual, anniversary month | LA Secretary of State, Annual Report |
| Maine LLC | $175 | $85 | Annual, June 1 | ME Secretary of State, Annual Report |
| Maryland LLC | $100 | $300 | Annual, April 15 | MD State Dept. of Assessments, Personal Property Tax |
| Massachusetts LLC | $500 | $500 | Annual, anniversary month | MA Secretary of the Commonwealth, Annual Report |
| Michigan LLC | $50 | $25 | Annual, February 15 | MI Dept. of LARA, Annual Report |
| Minnesota LLC | $155 | $0 (must file an information report, no fee) | Annual, December 31 | MN Secretary of State, Annual Report |
| Mississippi LLC | $50 | $0 (must file an information report, no fee) | Annual, April 15 | MS Secretary of State, Annual Report |
| Missouri LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| Montana LLC | $35 | $20 | Annual, April 15 | MT Secretary of State, Annual Report |
| Nebraska LLC | $100 | $13 | Biennial, April 1 of odd years | NE Secretary of State, Biennial Report |
| Nevada LLC | $425 | $350 | Annually, anniversary month | NV Secretary of State, Annual List of Members + Business License |
| New Hampshire LLC | $100 | $100 | Annual, April 1 | NH Secretary of State, Annual Report |
| New Jersey LLC | $125 | $75 | Annual, anniversary month | NJ Department of Treasury, Annual Report |
| New Mexico LLC | $50 | $0 | No annual fee + no report due | N/A, N/A |
| New York LLC | $200 | $9 | Biennial, anniversary month | NY Department of State, Biennial Statement |
| North Carolina LLC | $125 | $200 | Annual, April 15 | NC Secretary of State, Annual Report |
| North Dakota LLC | $135 | $50 | Annual, November 15 | ND Secretary of State, Annual Report |
| Ohio LLC | $99 | $0 | No annual fee + no report due | N/A, N/A |
| Oklahoma LLC | $100 | $25 | Annual, anniversary month | OK Secretary of State, Annual Certificate |
| Oregon LLC | $100 | $100 | Annual, anniversary month | OR Secretary of State, Annual Report |
| Pennsylvania LLC | $125 | $7 | Annual, September 30 (starting in 2025) | PA Department of State, Annual Report |
| Rhode Island LLC | $150 | $50 | Annual, February 1 – May 1 | RI Secretary of State, Annual Report |
| South Carolina LLC | $110 | $0 | No report due unless LLC files taxes as an S-Corp | N/A, N/A |
| South Dakota LLC | $150 | $50 | Annual, anniversary month | SD Secretary of State, Annual Report |
| Tennessee LLC | $300 | $300 minimum | Annual, April 1 | TN Secretary of State, Annual Report |
| Texas LLC | $300 | $0 for most LLCs (however a No Tax Due Report and Public Information Report must be filed every year) | Annual, May 15 | TX Comptroller, Public Information Report + Franchise Tax |
| Utah LLC | $54 | $18 | Annual, anniversary month | UT Department of Commerce, Annual Report |
| Vermont LLC | $125 | $35 | Annual, March 15 | VT Secretary of State, Annual Report |
| Virginia LLC | $100 | $50 | Annual, anniversary month | VA Corporation Commission, Annual Registration Fee |
| Washington LLC | $200 | $60 | Annual, anniversary month | WA Secretary of State, Annual Report |
| Washington DC LLC | $99 | $300 | Biennial, April 1 | DCRA, Biennial Report |
| West Virginia LLC | $100 | $25 | Annual, July 1 | WV Secretary of State, Annual Report |
| Wisconsin LLC | $130 | $25 | Annual, anniversary quarter | WI Secretary of State, Annual Report |
| Wyoming LLC | $100 | $60 minimum | Annual, anniversary month | WY Secretary of State, Annual Report |
Thank you for taking the time to read & I look forward to helping you in the future! Don’t hesitate to contact with any questions.
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